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Vote pushed back as town struggles with budget cuts
JOHNSTON - The Johnston Town Council met Monday evening with Mayor Willie Campbell opening the meeting with prayer and pledge of allegiance.
After approval of the April 2009 minutes and financial report, Council moved to the public hearing on Ordinance No. 2009-02, FY 2009-10 Budget Ordinance. With no comments, Mayor Campbell asked for a consideration of First Reading of Ordinance No. 2009-02, FY 2009-10 Budget Ordinance.
Town Administrator Keith Coones gave some explanation of the proposed 2009-10 budget package, saying he had received updated quarterly financial information from the county on tax collections and also from the state for the Local Government Funding.
The LGF funding was reduced by 17%, totaling $13, 879. Revenues are the same as last year, $918,997 and eleven items make up that figure. He explained that several factors had affected the revenue, such as economy, less property taxes due to fewer home sales, and less new car taxes due to fewer new cars being purchased.
Administrator Coones described proposed budget cuts in several departments, adding the biggest one of all, the non-departmental budget reduced from $104,803 to $90,362, resulting in the towns contingency fund being reduced from $16,874 in the current budget to $111 in next years, which is dangerously low. He explained that even one unplanned financial event could be detrimental.
"If we spend what we spent last year, we will wind up over-budget. There is a small 2.9 mill tax increase in the budget, keeping up with the rate of inflation." Administrator Coones stated, "Just for the record, on a $60,000 home, a 2.9 mill increase will equate to $8/yr. or $16/yr. on a $100,000 home."
Council Member Tommy Burton questioned the difference in the public works budget. Administrator Coones explained that the increase in the Public Works figure was due to an increase of $5000 in street lights, and a $6300 increase in fleet insurance due to an automobile accident last year when a sanitation truck rear-ended another vehicle, resulting in a $145,000 settlement.
That drove the cost of insurance up.
After much discussion on the budget, Council Member Morris Holmes voiced the need to have another work session before voting. Council Member Burton agreed, stating the importance of having every council member present to discuss the proposed budget. A work session was set for Thursday, May 14, at 4:30.
In the Mayor's Comments, he asked the council to be aware and keep the town at hand.
"We are faced with many cuts, but want to do the best job we can do."
He stressed the necessity for everyone to work together in accomplishing the budget needs.
"We have a whole lot of expense and we need some income. In order for us to give good service, it costs."
He asked the citizens to make sure they put metal to the side when disposing of it, as it costs about $200 when the public works department has to replace blades.
In closing, he reminded council that the Johnston Business Association Meeting is scheduled for the fourth Monday of the month at 6:30. The next meeting will be held at Cals Designs.
He thanked the Johnston Development for their hard work for the festival, adding, We salute you. With no further business to discuss, the meeting was adjourned and will reconvene on June 10, at 6pm.
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